How much will it cost to purchase a large order from the vendors? 2. Does Zoom Computers have the cash flow to make the purchase? 3. How much cash flow will Zoom Computers need to survive 120 days? 4. What recommendations would you offer to the owners of Zoom Computers for raising capital if needed?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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War room has contracted with a local university to replace the entire inventory (1,000) of computers and monitors with the Super Zoom 1000, 48" monitors, along with keyboard and mouse for $1,177,200. This is a 10% discount for a large contract purchase. The contract states all the computers must be installed within 60 days and payments will be Net 60 after installation.

Problem:

1. How much will it cost to purchase a large order from the vendors?

2. Does Zoom Computers have the cash flow to make the purchase?

3. How much cash flow will Zoom Computers need to survive 120 days?

4. What recommendations would you offer to the owners of Zoom Computers for raising capital if needed?

Need answer for all . Please do not give incomplete or incorrect answer with explanation computation formulation with steps so that I can better understand . Thanks for your help

 

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